New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-23
NEARLY TEN MILLIONS GONE
THE CINCINNATI BANK DISASTER.

THE CINCINNATI BANK DISASTER.
OFFICERS AGAIN ARRESTED ON A CHARGE OF CON.
sPIRACY-DEPOsrTORs LIKELY TO GET MOTH.
ING.
tSY TnrzoRAPE 70 rxs tribunal
CINCINNATI, June 22.-Every hour seems to add
to the magnitude Of yesterdays failures and to in
crease the frauds and double dealing which brought
them about. The liabilities OF the Fidelity Bank
are now expected to reach $s,o0o,o ,o00.
and those Of E. L. Harper 4 Co., the Swifts Iron
Works and the Riverside rolling mill win reach
from 100000 to $4,000 900 more, making
total Of ss,000,000 to $10OOO,OOO. I'll
uhe assets can only be conjectured, but IL the
bank depositors get twenty per cent they will be
lucky. There Is much uncertainty as to the amount
which may be realized from stockholders Of the
bank. 1t seems that Of the 100000 which the
Fidelity boasted Of the latter half had not been
authorized although paid for, and it Is a question
as to how it is to be treated nscttlng UP the assets
Then 1t is said that Harpers holdings mostly in
the second million II it is held that this second
million does not exist stock there may re moro
hope for the depositos.
Evidence Of the frauds used and the desperate
efforts made to get deposits comes to light every
hour. Judging by the number heard FROM most
Of the Fidelity's country correspondents who had
balance were systematically swindled. It is said
that large quantities of the discounted paper were
cent to NewYork and rehypothecated there, and
that no trace Of much Of it can now be found by
the examiner and receiver. =
1t is absolutely certain that for some weeks it
has been common thing with the three officers
Of the bank to urge friends to solicit certain Others
to keep their account with the Fidelity, with the
whispered promise that IL the application sue
cessful the parties approached should be "put on
the inside OF the big wheat deal" as reward.
Every sum of hundred dollars in sight seemed ia
be grabbed for Worldngmen with the savings OF
years were besieged to depcsit and they usually
succumbed to tho Establishments used
1he industry with which this collection OF funds
was kept up was equalled only by the completeness
with which they were swept into the bottomless
wheat pit of Chicago Franklin Alter; q very
conservative man formerly connected with the
Fidelity said to-day: "I believe there was never
more thoroughly gutted bank on earth there will
not be cent left for the depositOrs.'
His opinion is concurred in by other careful men.
Harper, Baldwin and Hopkins are closely. watched
for fear they may abscond.
Bank Examiner Eugene Powell has been exceed.
ingy busy all day in the attempt to get q knovl-
edge Of the real condition Of the Fidelity Bank.
He made discoveries which justified him. under the
advice Of Dstrict-Attorney Burnet and Assistant
Harper, Baldwin and Hopkins This is new fea-
ture Of the case II consists Of charge of con-
spiracy to defraud by issuing on June IA three
drafts of $100 0O0 each in favor of Wiltshire. Eek
ert & Co. upon the Chemical National Bank Of
New-York signed by B. E. Hopkins, assistant CASH
fer he charge Is cOnspiring to commit an offence
against the laws Of the United States by unlaw.
fully and wilfully misapplylng the funds and
credits of a banking institution, in pursuance OK
which purpose they issued these drafts.
Another affidavit charges the same persons with
conspiracy TO commit an offence against the
United States laws by issuing on May Is, " and
causing TO be transmitted to the Controller OF the
Currency false and fraudulent report OF the bank
at the close of business May 49, 1887, in this that
the said bank did not have in its possession
as stated IN said report. $500 900 in legal-tender
notes and $226.310 in silver certificates, they
log a statement In pursuit OF conspiracy to
deceive certain officers of the bank and
the agent appointed 70 examine the af-
fairs Of the bank" The arrest was made
upon these afiidavIts, which were sworn to by Mr.
Powell, late this afternoon. The prisoners were
taken together before United States Commissioner
Hooper. where they waived examination and were
bound over to appear at the October term OF the
Court. Mr.. Harper gave bOnds the sum of
$15, 900 and the other two Sc, 600 each
A publication was made here that Messrs Swlft
& Lyman, attorneys for the Exchange National
$3.50, 900 against the Fidelity. The truth is that
the exact amount was $l96,667 80.
An attachment was granted by Justice Lawrence, in
the Supreme Court, Chambers yesterday, against the
Cincinnati at the suit OF the National Broadway Bank
this city, $2l75l 25. IL Is claimed that
between May 81 and June 49, the Broadway Bank sent
10 the Fidelity National Bank checks payable
inC Cfuriu paN its vi